Spain- Summary of Labor Measures
ON THE FLEXIBILIZING MEASURES FOR THE PROCESSING OF RECORDS OF TEMPORARY EMPLOYMENT REGULATION (ERTE) IN RD 08/2020
Given the numerous doubts and questions we have received about the new regulation that speeds the processing of Temporary Regulation Files due to the Covid-19 health crisis and their economic consequences, collected in RDL 08/2020, from PICH BNFIX we have considered appropriate to carry out a brief summary of the most relevant aspects, without prejudice to the fact that we subsequently carry out a more exhaustive study of the subject.
FORCE MAJEURE’ ERTEestarán sujetas al compromiso de la empresa de mantener el empleo durante el plazo de seis meses desde la fecha de reanudación de la actividad.estarán sujetas al compromiso de la empresa de mantener el empleo durante el plazo de seis meses desde la fecha de reanudación de la actividad.estarán sujetas al compromiso de la empresa de mantener el empleo durante el plazo de seis meses desde la fecha de reanudación de la actividad.
Force majeure situations are understood for the purpose of suspending employment contracts:
a) Those derived as a consequence of the closure or suspension of activities decreed in RDL 463/2020 for health reasons.
b) Situations resulting from extraordinary circumstances when most of the workforce is infected with Covid-19 or is in a situation of preventive isolation, and the activity of the company cannot continue.
c) Circumstances that imply lack of supplies that seriously obstruct the continuation of the ordinary development of the activity.
- In this type of case, while the suspension of contracts lasts, and when the company has less than 50 employees, the General Treasury of Social Security will exempt the company from the payment of the business contribution by Social Security, as well as of the relative to the quotas for concepts of joint collection.
- If you have more than 50 employees, the exemption from the obligation to contribute collected in the previous section will reach 75% of the business contribution.
- These measures will remain subject to the commitment to maintain employment for a period of six months.
PRODUCTIVE AND ECONOMIC REASONS’ ERTE
These assumptions are a consequence of COVID-19, but not directly like the ones mentioned in the previous section, but indirectly, and are associated with an income decrease resulting from the consequences of the measures approved as a consequence of the COVID-19 health emergency.
In this situation, the following deadlines have been significantly reduced respect to the previous regulations. So, in these cases:
- A procedure is established that reduces the report of the Labour Inspection to seven days, the request of which will be optional by the Labour authority.
- In the absence of worker representation, prior to ERTE, the representative commission for the negotiation of the legally established consultation period will have to be constituted within the non-extendable period of 5 days.
We would like to take this opportunity to greet you carefully and wish you the best in this serious health situation.
Pedro Alonso
BNFIX PICH
Tax · Legal · Audit